COMHAIRLE NAN EILEAN SIAR EQUAL PAY AUDIT

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1 COMHAIRLE NAN EILEAN SIAR EQUAL PAY AUDIT OCTOBER 2013

2 1 Introduction 1.1 Comhairle nan Eilean Siar supports the principle of equal pay for work of equal value and believes that our pay systems should be based on objective criteria. The Comhairle aims to eliminate any gender bias in its pay systems and conditions of service and understands that equal pay between men and women is a legal right under both domestic and European Law. 1.2 The Equality Act 2010 sets out specific requirements of named public authorities, including the Comhairle, to publish information on gender pay gaps through an equal pay audit. 2 Context 2.1 Research indicates that organisations that take a positive approach to diversity and that have HR systems underpinned by equality measures deliver a better product and service. Any organisation that is known for putting equality and diversity measures into practice is more likely to project a positive public image within the wider community. 2.2 The law gives a woman the right to be paid the same as a man (and vice-versa) for: Like work Two employees doing the same or very similar roles. Work rated as equivalent - Different jobs which have been given the same rating as the result of an analytical job evaluation scheme. Work of equal value Different jobs that the employee claims require a similar level of skill and ability. For example, a female domestic assistant comparing her work to that of painters in the same organisation. 2.3 As part of Single Status Agreement, the Comhairle implemented the results of the SJC Job Evaluation Scheme in July 2008 (backdated to April 2007). The outcome of the job evaluation process led to a new pay and grading structure being developed by the Comhairle. Terms and conditions were also standardised to achieve more flexible working practices. All jobs have now been incorporated into this structure with the exception of Chief Officers and Teachers. 2.4 Prior to the implementation of Single Status, an Equality Impact Assessment was undertaken of the proposed pay and grading structure. The independent HR Consultant who undertook this review endorsed the pay and grading structure as both technically robust and non-discriminatory. 2.5 Subsequent to the implementation of Single Status the organisation has also successfully migrated the group of employees covered by arrangements for Craft Operatives onto the new pay and grading structure with effect from November Terms and conditions of service for this group of employees were also migrated onto SJC arrangements at this point. 2

3 3 What is an Equal Pay Audit? 3.1 An equal pay audit is regarded as the most effective means of establishing whether an organisation is in fact providing equal pay. The equal pay audit model recommended by the Equality and Human Rights Commission includes the following five steps: 1. Deciding the scope of the audit and identifying the data required. 2. Identifying where employees in protected groups are doing equal work. 3. Collecting and comparing pay data to identify any significant equal pay gaps. 4. Establishing the causes of any significant pay gaps and deciding whether these are free from discrimination. 5. Developing an equal pay action plan and continuing to audit and monitor pay. 3.2 This audit has been undertaken based on these five key principles. 4 Methodology 4.1 Scope For practical reasons few organisations are able to carry out a pay audit of the whole workforce on a wide range of protected groups at the first attempt. It is for this reason that the scope of this audit has been limited to gender only. It is intended that the scope of future audits could be expanded. Other pay gaps which could be analysed include differences on the grounds of ethnicity, working pattern, age or disability. 4.2 Pay data The pay data analysed is based on an extract from the Comhairle s Payroll System dated February It includes Local Government Employees (including former craft employees), Teachers and Chief Officers. Casual employees and Supply Teachers have not been included. The pay data has been cross referenced with job evaluation data held to ensure that all employees are aligned to the correct grade for their post in terms of its job evaluation score. (Job evaluation data is available for Local Government Employees only as Chief Officers and Teachers were not included in the Single Status Agreement). 4.3 Analysis The combined data was uploaded to specialist software (Equal Pay Reviewer) and this assisted in analysing the data. 4.4 The following pay gap reports were conducted: All staff, gender Local Government Employees/Chief Officers, gender Local Government Employees/Chief Officers, gender, grade Teachers, gender Occupational Segregation 4.5 These analytical reports form the Equal Pay Audit for 2013 and are summarised in this document. A gender pay gap analysis compares average pay between women and men. For the purpose of this audit averages have been calculated using mean values. The reports indicate percentage value of any pay gaps. 3

4 4.6 A pay gap does not indicate that men and women are being paid differently for equal work, but may indicate that, for example, there are more women in lower-paid roles and more men in higher-paid roles, which affects the average pay for each gender. 5 Organisational Distribution. 5.1 The pie chart below (Graph 1) illustrates the current gender breakdown in the organisation. 77% of employees are female and 23% are male. Graph 1 Organisation distribution by gender Female Male 5.2 The Pie Chart below (Graph 2) illustrates the number of full time and part time employees. 58% of employees are part time and 42% are full time (this data excludes teachers and is for local government employees only). Graph 2 Organisation distribution by work pattern Full Time Part Time 4

5 5.3 Graph 3 illustrates the gender distribution of employees by grade. The greatest number of female employees fall within Grades B to E (76% of all females employed) and the greatest number of male employees fall within Grades D to G (63% of all males employed). Graph 3 6 Gender Pay Gap 6.1 Overall Pay Gap - All Employee Groups Table 1 - Summary of pay gap across all employees groups All All Local All Employees Government Teachers Total Employees Male Female Average hourly rate Average hourly rate Male Female Paygap 17.5% 21% 7% a) There is an overall pay gap of 17.5% between the average hourly earnings of men and women across the all jobs in the Comhairle. b) There is a pay gap of 21% between the average hourly earnings of men and women across local government employees. c) There is a pay gap of 7% between the average hourly earnings of men and women across teaching employees. 5

6 6.2 Pay Gap by Grade Table 2 - Local Government Employees by Grade - All All Males All Females Pay Gap Grade Avg Basic Avg Basic Avg Basic Avg Basic Difference Pay Gap Count Pay Hourly Rate Count Pay Hourly Rate ( ) (%) GRADE A GRADE B GRADE C GRADE D GRADE E GRADE F GRADE G GRADE H GRADE I GRADE J GRADE K GRADE L GRADE M CO CX Rep Table 2 shows the pay gap in each grade for all local government employees. The important point to note here is the insignificant pay gap within each grade. It shows that pay gap of 21% between men and women is due to there being a larger proportion of female workers within the lower grades rather than differences in pay between men and women within each grade. 6.4 Table 3 - Local Government Employees by Grade Full Time Grade FT Males FT Females Pay Gap Count Avg Basic Pay Avg Basic Hourly Rate Count Avg Basic Pay Avg Basic Hourly Rate Difference ( ) Pay Gap (%) GRADE A GRADE B GRADE C GRADE D GRADE E GRADE F GRADE G GRADE H GRADE I GRADE J GRADE K GRADE L GRADE M CO CX Rep

7 6.5 Table 3 shows the pay gap in each grade for full time local government employees only. When you look at full time employees in isolation the number of male and female employees is more equal (46% male and 54% female). There is also less of a pay gap overall at 10.5%. The table shows that females are under represented in Grades J to Chief Officers and there are greater numbers of full time female employees in the lower grades. Table 4 - Local Government Employees by Grade Part Time PT Males PT Females Pay Gap Grade Avg Basic Avg Basic Avg Basic Avg Basic Difference Pay Count Pay Hourly Rate Count Pay Hourly Rate ( ) (%) GRADE A GRADE B GRADE C GRADE D GRADE E GRADE F GRADE G GRADE H GRADE I GRADE J GRADE K 0 0 GRADE L 0 0 GRADE M 0 0 CO2 0 0 CX Rep Table 4 shows the pay gap in each grade for part time local government employees only. There are significantly more part time female employees than part time male employees but less of a pay gap between the two groups at a pay gap of 0.16% in favour of men. There are very few part time employees at the higher end of the pay scale and most are concentrated between Grades A to E. This is the same for both men and women and that is why there is virtually no pay gap. 7 Findings (Pay Gap by Grade) 7.1 In the assessment of equal pay risk, the Equalities and Human Rights Commission (EHRC) advise that any gender pay gap within a defined equal pay workset of greater than 5% is of concern and action be taken to address this gap. A pay gap of 3% - 5% is cautionary and the reasons for this should be investigated. You can see from the tables above that there is only one instance where the pay gap is over 5% in favour of males (Table 3 Grade A). This is not significant as it is comparing only one male employee and one female employee. The female employee is currently at the bottom point of the grade and the pay gap will be reduced when she receives the next increment. 7.2 Longer serving employees have moved through the incremental scale of the respective salary grade to the top of the scale. There are three salary points within each grade. New appointees are appointed to the first point of the salary scale for the respective 7 Gap

8 position and annual increments are awarded. This policy is consistently applied across all Local Government positions. 7.3 The Comhairle s policy on pay protection for local government employees who have been redeployed to a lower graded post or facing a reduction in earnings due to a restructuring type exercise is to afford 6 months full pay protection. 7.4 The Comhairle s grading structure is therefore robust in terms of equal pay as there are no significant equal pay disparities within the grades. 8 Pay Gap Teachers Table 5 Pay Gap for Teachers Male Female Difference Pay Total Average Salary Total Average Salary in salary Gap 88 37,942 (22%) 311 (78%) 35,289 2,653 7% 8.1 Overall figures have been provided for teachers. Teachers are out with the job evaluation scheme and therefore more details have not been provided. 8.2 Table 5 shows that the average salary for male teachers is higher than female teachers and there is a pay gap of 7% in favour of men. This is because, proportionally, there are more male teachers in promoted teaching posts. 8.3 Salary scales for teachers and associated professionals are determined nationally. In relation to promoted teaching employees, the appropriate salary placing is determined using the national Job-Sizing Toolkit. The Toolkit considers a range of factors related to a school and the remit of the post in order to determine the appropriate salary placing. 8.4 In addition to this the salary conservation for teaching staff is now capped at three years, rather than lifetime conservation as was the case previously. The Comhairle now has relatively few teachers with a conserved salary and this is likely to diminish over the next couple of years. 8

9 9 Occupational segregation Job Title Table 6 Pay Gap: Male and Female Occupations All Males Count Avg Basic Pay Avg Basic Hourly Rate All Females Count Avg Basic Pay Avg Basic Hourly Rate Difference ( ) DINING SUPERVISOR CLEANER KITCHEN ASSISTANT DOMESTIC LEISURE & RECREATION ATTENDANT CLERICAL ASSISTANT CLASSROOM ASSISTANT SCHOOL ASSISTANT BUS DRIVER AUXILIARY SPECIAL CARER JANITOR HOME CARE WORKERS PLANT OPERATIVE CLEANSING LABOURER COOK DAY CARE OFFICER NURSERY KEY WORKERS SOCIAL CARE WORKER CLEANSING DRIVER NURSERY KEY WORKER SENIOR SOCIAL CARE WORKER SOCIAL WORKER Table 6 above shows generic jobs which have large male and female populations. male jobs have been highlighted in blue and female jobs are highlighted in pink. The table reflects the broader occupational segregation across the local government sector. There is strong gender based segregation noted in traditional female roles of caring, catering and clerical, and for male roles such as drivers, cleansing labourers and Janitor s. 9.2 The Comhairle has applied an analytical job evaluation scheme, which is agreed nationally, to assess the relatives worth of all local government jobs. There is no evidence that the pay and grading structure contains any gender bias. Therefore it is not considered that the dominance of females in certain grades is a result of direct or indirect discriminatory practices but rather is due to gender typical job choices. 9.3 Furthermore given the rigour and scrutiny surrounding recruitment practices with the Comhairle there is no evidence of any discriminatory practices to perpetuate these traditional gender choices. Pay Gap (%) 9

10 9.4 Tackling occupational segregation is, however, a significant challenge given the complexity of the issue with external factors such as gender stereotyping from birth; career choices through school/vocational education; availability of child care etc. all having an impact as well as employment factors such as opportunities for flexible working. 10 Pay Gap Pre/Post Single Status 10.1 Analysis shows that the overall pay gap between men and women is declining. We have examined historical pay data for local government employees and this is summarised in Table 7 below. Table 7 Pay Gap: Pre/Post Single Status Average Salary Male Female Pay Gap Pre SS (2007) 21,099 15, % Implementation (2008) 21,735 16, % Present (2013) 24,404 19, % 10.2 The pay gap has fallen by over 6% since the implementation of Single Status. 11 Comparisons with the UK Workforce headline pay gaps. Table 8 Comparison with UK pay gaps. Pay Gap UK Workforce Comhairle nan Eilean Siar Full Time Employees 14.9% % All Employees 18.6% % Table 8 shows that the Comhairle s pay gap falls below the national average for both All Employees and Full-Time Employees. 1 Office for National Statistics (figure quotes as the mean hourly pay figure for 2011), Accessed June Office for National Statistics (figure quotes as the mean hourly pay figure for 2011), Accessed June

11 12 Findings 1. In common with other Councils, the Comhairle has a predominance of female employees in lower grade occupations with the local government employee group which pulls the average hourly rate down significantly hence the wider overall pay gap. 2. As there are no female chief officers again this contributes to the overall pay gap. 3. The overall gaps are a result of occupational segregation and not equal pay and not equal pay for work rated as equivalent; work of equal value or equal pay for work that is the same or broadly similar. 4. The Comhairle s grading structure is robust in terms of equal pay as there are no significant equal pay disparities within the grades. 5. The implementation of Single Status has narrowed the Comhairle e pay gap between men and women by over 6%. 13 Actions required 13.1 Areas that we will monitor and work to strengthen include: Continue to adopt a robust and consistent approach to the grading of new posts and the consideration of re-grading requests. The Comhairle continues to adopt a robust and systematic approach to the grading of new posts and regrading requests using the Job Evaluation Scheme provided as part of the Single Status agreement. Broaden of the scope of any future audit to include any other protected characteristics if the information is available. Consider actions to reduce occupational segregation when recruiting to jobs where there is an historical imbalance, for example wording job advertisements to reflect the Comhairle s desire to attract applications from the under-represented gender. Research indicates that flexible working is one approach that can assist with reducing occupational segregation. Existing flexible working policies and procedures will be kept under review to ensure that they continue to meet the Comhairle and employees needs. Human Resources October

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